Glonghui December 5: Some investors asked Shanghai Beiling (600171.SH): The company already has 1,200V SIC MOS products and has automotive-grade product design experience, while Huada Semiconductor's FlyShiny Semiconductor has designed automotive-grade 1200V SIC MOS and applied it to OBC and DC-DC, both of which are downstream businesses in Beiling. Do they constitute competition in the industry? Or is the company ready to give up research on automotive-grade SIC MOS for some benefit? The promises in the company's financial report state that if they research something new, Beiling and other Huada companies have it, and Beiling has priority to enjoy it. Is Huada Semiconductor reneging on its promise?

Shanghai Beiling replied: Hello investors! The Flyggy Semiconductor you mentioned is a third-generation semiconductor supplier. Its main products are silicon carbide devices, yet Shanghai Beiling's current main IC product layout is still analog circuits. At this stage, the power device business is also dominated by silicon-based MOSFETs, IGBTs, etc. There is a significant difference between the two main businesses, which do not constitute competition in the same industry. Considering that third-generation semiconductors are an important direction for the development of power devices, Beiling has also carried out research and exploration of third-generation wide-band semiconductor power devices and carried out a preliminary product layout. Currently, it has not formed a substantial competitive relationship with related companies of Huada Holdings in the R&D, production, or application stages. Thank you!